Insurer Denies Fault in BitPay Security Breach Lawsuit
An insurance company sued by industry startup BitPay following a claim dispute has fired back, denying the bitcoin payment processor's allegations in a new court filing. BitPay originally filed suit against Massachusetts Bay Insurance Co (MBIC) months after it lost 5,000 BTC (then valued at roughly $1.8m) following a phishing attack. The company later alleged breach of contract and bad faith in a suit filed against MBIC. However, in a 17th November court filing, MBIC has stated that it believes it was justified in rejecting BitPay's claim, formally requesting the court to toss the suit. At....
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BitPay, the Bitcoin payment processor, has endured a troublesome week. First, it was made public a hacker gained access to the CFO's email account and coaxed the company into sending nearly $2 million. The company recently made major changes to its free plan, as well as apparently laid off numerous employees. The company filed a lawsuit September 15 in Atlanta federal court claiming that, in December 2014, BitPay's chief financial officer, Bryan Krohn, was tricked by a hacker into sending $1.8 million to a hacker. "After capturing Mr. Krohn's Bitpay credentials, the hacker used that....
A legal battle between bitcoin payment processor BitPay and a major insurance company has ended. Filed yesterday, a court order dismissed the suit between BitPay and Massachusetts Bay Insurance Company, a subsidiary of Hanover Insurance, without prejudice. According to the court order signed by US District Judge Steve Jones, the two sides "have reached a settlement in principal". The suit traces back to late 2014, when BitPay lost approximately $1.8m in bitcoin during a phishing attack that targeted the company’s leadership team. At the time, the unknown attacker was able to....
Bitcoin miners servicing GAW were sued by Mississippi Power Company (MPC) for non-payment and breach of contract earlier this month, with the company seeking close to $350,000 including interest and court fees for the lawsuit. In particular, the company is claiming around $224,000 in services repayment, $50,000 in costs for GAW, and $73,493.48 in utility claims. The lawsuit was filed last week in the Southern District Court for the Southern District of Mississippi, with MPC being represented by Balch and Bingham LLP. Bitcoin Miners Lawsuit. GAW has already ceased bitcoin miners operations....
Japanese Bitcoin exchanges and their customers will soon be insured for the first time thanks to a product launched by Tokyo-based insurance firm Mitsui Sumitomo Insurance. As reported by the regional publication Nikkei, coverage will be offered against damages and losses borne out of breaches or hacks, ranging from 10 million yen to 1 billion yen (between $88,000 and $8.8 million approximately). Notably, coverage also includes losses incurred due to internal company mishaps and employee improprieties, a clause which BitPay is certain to favor following a theft of 5,000 bitcoins in 2015....
It's unclear at the time of publication whether there will be any recourse for investors in recovering the lost funds. On Monday, IRA Financial Trust, a platform providing self-directed digital asset retirement and pension accounts, filed a lawsuit against cryptocurrency exchange Gemini for alleged negligence in safeguarding customers' digital assets during a critical exploit. The firm's client accounts were held in Gemini's custody. On February 8, a breach led to the siphoning of $36 million in crypto assets from customers' accounts via unauthorized withdrawals. Since then, both companies....